On September 4, 2026, Singapore and the Lao People’s Democratic Republic signed an Implementation Agreement for carbon credit collaboration under Article 6 of the Paris Agreement. This marks Singapore’s 12th Implementation Agreement on carbon credit collaboration.
The agreement was signed virtually by Grace Fu, Singapore’s Minister for Sustainability and the Environment and Minister in charge of Trade Relations and Dr. Linkham Douangsavanh, Lao PDR’s Minister of Agriculture and Environment.
The Government of Singapore website lists Singapore's 11 previous Implementation Agreements with Ghana, Bhutan, Peru, Rwanda, Thailand, Papua New Guinea, Paraguay, Chile, Mongolia, Vietnam, and the Philippines. These agreements establish a framework for Article 6 credit generation and international transfers, covering project authorization, corresponding adjustments, credit tracking, and other key compliance details under the Paris Agreement. Details for the new Implementation Agreement with Laos will be published on Singapore's government website soon.
Singapore’s Growing Role in Article 6 Market Leadership
The deal with Laos represents Singapore’s 12th Implementation Agreement, and 4th with an Association of Southeast Asian Nations (ASEAN) Member State. Alongside Switzerland, South Korea, and Japan, Singapore is one of the leading buyer countries participating in carbon credit collaboration.
Grace Fu, Singapore’s Minister for Sustainability and the Environment, said, “The signing of the Implementation Agreement is an important milestone in our bilateral partnership and unlocks new opportunities in carbon markets for businesses and local communities. By working together, ASEAN can lead the way in building a low carbon future that delivers tangible benefits across the region.”
Beyond bilateral agreements, Singapore actively supports carbon markets through various initiatives, including co-chairing the Coalition to Grow Carbon Markets. With over 160 carbon services and trading companies, the Singapore Economic Development Board (EDB) identifies themselves as a hub for carbon market opportunities.
Singapore has currently entered into 17 Memoranda of Understanding (MOUs) across Latin America, Asia, Africa, and Oceania. These MOUs serve as a precursor to formal Implementation Agreements, representing a country’s intent to collaborate with Singapore on Article 6 carbon market initiatives.
Supporting Sustainable Development and Adaptation in Laos
The Implementation Agreement framework has the potential to provide project developers with the leverage to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook.
“It gives us a transparent, high-integrity framework to develop carbon credit projects that create jobs, protect our environment, and channel climate finance towards adaptation in Lao PDR.” as said by Dr. Linkham Douangsavanh, Lao PDR’s Minister of Agriculture and Environment.
Beyond driving emission reduction projects, the agreement also ensures direct support for local sustainability. Singapore requires carbon credit developers to make a monetary contribution equivalent to 5% Share of Proceeds (SOP) from authorized credits directly toward climate adaptation measures in Laos.
Additionally, Singapore mandates that 2% of Article 6-authorized carbon credits be canceled upon issuance. This prevents the credits from being traded or counted toward national emissions targets, promoting market integrity and ensuring a net overall reduction in global emissions.
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